Weeks: class z. No class 2 02/ 2010 ACC331 - Cost Accounting Chapter 4: Job Order Costing Homework Class Problem 3 The following information applies to the McDonnell Company for April production. There are only two jobs (A and B) in production in April. 1) Purchased direct materials and indirect materials with the following summary of receiving reports: Material X Material Y Indirect materials Total 12.000 3.000 2) Issued direct materials and indirect materials with this summary of requisitions: Material X Material Y Subtotal Indirect materials Total Job A $ 8,000 3,000 $ 11,000 Job B $ 16,000 8,000 $ 24,000 Total $ 24,000 11,000 $ 35,000 39,000 $ 74,000 3) Factory labor incurred is summarized by these time tickets: A S Job Job B Indirect labor Total 22,000 15.000 28,000 IS 65.000 4) Manufacturing overhead (factory utilities, factory depreciation, and factory insurance incurred) is summarized as follows: Utilities Depreciation Insurance Total $3,000 18,000 2,500 S 23.500 5) Manufacturing overhead costs were applied to jobs at the predetermined rate of $ 46 per machine hour. Job A incurred 1.100 machine hours: Job B used 800 machine hours. 6) Job A was completed: Job B was still in process at the end of April. The company closed the overapplied or underapplied overhead to the cost of goods sold account at the end of April. Required: a) Calculate the total manufacturing cost for job A and Job B for April. b) Calculate the amount of overapplied or underapplied overhead and state whether the cost of goods sold account will be increased or decreased by the adjustment